Council renews Uptown Lexington MSD tax district

Monday

Mar 25, 2013 at 9:02 PM

The Lexington City Council voted to renew uptown Lexington's Municipal Service District after a public hearing on Monday.

BY REBEKAH CANSLER MCGEEThe Dispatch

The Lexington City Council voted to renew uptown Lexington's Municipal Service District after a public hearing on Monday.Uptown Lexington was formed in 1993 and of the 61 North Carolina Main Street programs, 32 of those use the special tax district tool to fund their programs. Properties within the district of Third Street to Third Avenue and roughly South State Street to Salisbury Street are taxed an additional .20 cents per $100 valuation. At the inception of this district, property owners agreed to the additional tax and decided a renewal was required every five years. This is the fourth time the MSD tax has been approved.Before the public hearing, Tim Ragan, president of Uptown Lexington, made a brief presentation about the success the organization has had on Lexington.Ragan showed photos of 20 years ago when uptown Lexington was called downtown Lexington, noting the utility lines that crisscrossed the roadway and the cracked and old glass block sidewalks. "There were a lot of 'for rent' signs throughout the district," Ragan said. Through a proven system developed by the Main Street program, Uptown Lexington began to revitalize the district. The four pillars are promotion, economic restructuring, design and organization. Since 1994, over $221,000 has been granted through the City of Lexington to Uptown for façade grants and that has leveraged over $507,000 in private investment. Ragan said public and private investment in the district totals more than $31.6 million. "The facade grants provide funding to small projects such as changing flat metal awnings to total redesign of buildings such as what has been done to Café 35 and Magnolia's," Ragan said. In the course of 20 years, 117 facades have been redone in the district, 60 buildings were renovated, and there was a net gain of 87 businesses and 262 jobs. In that same time frame, the property value in the district has increased from $21 million to over $50 million in 2012.Uptown Lexington has also achieved recognition on the state level for projects such as Pigs in the City, the BBQ Capital Cook-off and the streetscape project. The organization is also responsible for special events. "We invited over 250 business and property owners to hear about what we accomplished and what we are planning. We asked for letters of support from uptown property owners and businesses," Ragan said. Twenty-eight letters of support were included in the council's packet. Property owner and retail merchant, Toby Prince of All About Education, supported the MSD tax."We bought our building in November 2004 and opened our store, All About Education, in January 2005. Since opening, we have benefited from the support and promotions of Uptown Lexington … We would have been lost if we had not received guidance from Uptown Lexington during our first year. This organization is a vital part of our Uptown Lexington Community … Please continue to fund Uptown Lexington with the MSD tax," Prince stated in a letter. Greg Turlington, on behalf of Lexington Investments, Turlington Properties and MBJ&J, also supported the district."As property owners, we have a vested interest in maintaining uptown Lexington as a healthy, vibrant business district … We encourage you to vote for reauthorization of the Municipal Service District and the property tax," Turlington stated in a letter to the mayor.Before Ragan finished the presentation, he noted Uptown Lexington was a very important part to growing the city."Uptown is the heart and soul of our community," Ragan said. "We hope you will continue to let us be one of your economic development partners for the next five years."Rebekah Cansler McGee can be reached at 249-3981, ext. 228, or at rebekah.mcgee@the-dispatch.com.